A Personal Contract Purchase agreement or ‘PCP’ is a finance product designed to help reduce monthly payments by delaying part of the repayment until the end of the agreement.

This final payment is often referred to as the GMFV or Guaranteed Minimum Future Value and is guaranteed by the finance lender.
This figure is calculated using industry data and determines the likely value of your vehicle at the end of the finance agreement, in line with the term and estimated annual mileage.

The GMFV will offer you additional protection in the future should car values drop in the used car market.

Hire Purchase is a finance product that allows you to budget accurately by giving you a fixed interest rate and fixed monthly payments.
After paying a relatively low deposit, you hire your car and will pay off the entire value of the car in monthly instalments.

It’s one of the simplest forms of finance you can choose, because there are no restrictions on your mileage, so it’s easier if you are unsure how much you will use the vehicle.

The GMFV will offer you additional protection in the future should car values drop in the used car market.

Lease Purchase or Balloon HP offers lower monthly payments than standard Hire Purchase.

LP is a finance product that allows you to budget accurately by giving you a fixed interest rate and fixed monthly payments, subject to a final option to purchase fee.